Russia approves scheme to subsidise feed

A new programme recently announced by Russia’s Prime Minister, Dmitry Medvedev, will give financial support to agricultural producers to purchase animal feed, according to Prime Minister.

According to the final document 90% of investments will be financed from the federal budget, approximately 15 billion rubles (US$500mln). Another 2 billion rubles (US$70 mln) is to come from regional budgets.

"We agreed that it was possible to manoeuvre state resources and additionally subsidise livestock enterprises to compensate for the rising costs of feed - to allocate certain funds. Initially 15 billion rubles (US$500mln) will be allocated, however the total amount of subsidising during this year is expected to reach 42 billing rubles (US$1.4bn)," Medvedev said.

According to the Agricultural Minister, Nikolai Fyodorov, most of the funds will go to compensate the rising costs of feed in the poultry and pig industries.

"We are allocating 11,800 million rubles (US$390 mln) immediately to be used to support poultry and pork producers," Fyodorov said. About 3.2 billion rubles (US$110mln), is planned to support the dairy industry.